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Informist, Thursday, Jul. 17, 2025

 

By Rajesh Gajra

 

NEW DELHI – The largest cement manufacturer in the country, UltraTech Cement Ltd., is likely to have recorded strong top line growth in the June quarter on the back of an increase in volume from recent acquisitions. Higher cement prices and lower input costs are also likely to have aided the operating profit. The bottom line is likely to largely track the operating profit growth but may partly be reined in by a sharp rise in non-operating expenses such as depreciation and interest.

 

In March 2024, UltraTech Cement had concluded the acquisition of Kesoram Cement Ltd., a wholly owned subsidiary of Kesoram Industries Ltd., having cement factories in Telangana and Karnataka in an all-share deal. The assets of Kesoram Cement were fully consolidated with the company around the end of 2024-25 (Apr-Mar). UltraTech Cement had also acquired a majority stake in The India Cements Ltd. which became its subsidiary in December.

 

UltraTech Cement is likely to report a consolidated net profit of INR 21.76 billion for the June quarter, up 28% on year, according to an average of estimates by eight brokerages. The company's consolidated revenue from operations is seen at INR 213.37 billion, up 18% on year. The earnings before interest, tax, depreciation, and amortisation for the June quarter will likely be INR 44.04 billion.

 

The net profit estimates range from a low of INR 18.91 billion by brokerage Nuvama Wealth Management to a high of INR 23.42 billion by Dolat Capital Market. Among the revenue estimates, the lowest is INR 200 billion by Nirmal Bang Equities while the highest is INR 218.50 billion by Systematix Shares and Stocks (India).

 

In the March quarter, UltraTech Cement's consolidated net profit had increased 9.9% on year to INR 24.82 billion and the consolidated revenue from operations had risen 13% to INR 230.63 billion. At Wednesday's closing price of INR 12,453, shares of the company had risen 1.8% from the closing price of INR 12,237 on Apr. 25, the trading day prior to Apr. 28, when the company announced its March quarter earnings during market hours.

 

Excluding volumes from recently acquired cement assets of Kesoram Cement and India Cements, UltraTech Cement's like-to-like volume growth in the June quarter will likely be 4% on year according to brokerage ICICI Securities and around 6?cording to Motilal Oswal Financial Services. Including their volumes, ICICI Securities sees consolidated volume rising around 11% on year while Motilal Oswal Finance expects a 17% rise.

 

Analysts at the institutional equities division of Kotak Securities estimate UltraTech Cement's blended realisation for the June quarter to increase 2.4% on year "on account of price hikes in most regions during the quarter." The realisation may be up around 3% on year, according to both ICICI Securities and Motilal Oswal Financial.

 

Volume growth and increase in sales realisation will result in double-digit revenue growth for the cement major. This will also be the main driver of EBITDA increase, according to analysts, along with benign input costs.

 

Motilal Oswal Financial Services said variable costs per tonne of UltraTech Cement in the June quarter will likely be flat on year and operating expenses per tonne will likely decline 2% on year. According to Kotak Securities the company's costs per tonne will likely decline 3.6% on year, aided partly by operating deleverage.

 

The blended EBITA of UltraTech Cement will likely jump up 32% on year, according to both Kotak Securities and ICICI Securities. The bottom line growth will likely mirror the EBITDA growth. However, Motilal Oswal Financial said depreciation cost of the company in the June quarter may rise by a sharp 37% on year and the interest expenses will likely jump up 90% on year. This may partly offset the bottom line growth from strong EBITDA.

 

The company will declare its financial results for the June quarter Monday. Investors will likely be tracking management commentary on updates on volume growth outlook for FY26. In April, during the post-March quarter earnings call with investors and analysts, the management of UltraTech Cement had said that the organic volume growth will be in double digit for FY26. Updates on capex and timelines will also be watched by investors.

 

At 1137 IST, shares of UltraTech Cement were up 0.7% at INR 12,536 on the National Stock Exchange. The company has 16 buy recommendations from analysts at an average target price of INR 13,372, three hold recommendations with target price ranging from INR 12,405 to INR 12,859, and two sell calls having target prices of INR 10,005 and INR 12,114.

 

Following are the June quarter consolidated earnings estimates for UltraTech Cement based on reports from eight brokerage firms in descending order of estimate of net profit:

 

Brokerage	Net Sales	Net Profit	EBITDA
	(In INR million)
Dolat Capital Market Pvt Ltd	212,207	23,423	45,611
JM Financial Institutional Securities Pvt Ltd	213,953	22,359	44,922
Systematix Shares and Stocks (India) Ltd	218,500	22,200	44,600
Motilal Oswal Financial Services Ltd	218,400	22,100	43,800
HDFC Securities Ltd	215,885	21,959	44,906
ICICI Securities Ltd	215,023	21,654	44,065
Nirmal Bang Equities Pvt Ltd	199,995	21,478	43,689
Nuvama Wealth Management Ltd	213,014	18,905	40,709
Average	213,372	21,760	44,038

 

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Deepshikha Bhardwaj

 

 

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